Budge Huskey: How US interest rate hikes might affect housing market in 2016?"(2)
Tina Mak, realtor at Coldwell Banker Westburn in Vancouver had a 25 minutes detail interview with Budge Huskey, President and CEO of Coldwell Banker on "How US interest rate hikes might affect housing market in 2016".
Whilethe wealth gap between rich and poor keeps growing in North America, China and India's middle class income growth is increasing. I personally think this means international students population will increase in North America.
5) What kind of impact do you see this might have on our North America real estate market especially in high ranking school neighborhoods? or student housing properties?
Over the last ten years, the number of international students coming to the US for higher education has skyrocketed, with the Chinese proving the largest group and most affluent. Increasingly, the trend has been to invest in real estate housing for children while attending school with the ability to hold later as a second home or as a rental investment. Prices in the US have always been influenced by the quality of schools within a market, but the level of international investment around notable universities has proven an added dimension.
Having said that, LA shut down all public school on Dec 15th due to an email threat.
6) Do you see if it might affect the housing price in those school neighborhoods?
Unfortunately, we are learning that no area is totally immune to the threat of terrorism and we must take any claim seriously, but
it’s clear the recent events were fabricated. I see no circumstanceunder which good schools would ever become a detriment to values, and good school districts will always be the safest investment available.
Another group of population growth rate is also increasing. United Nation projects elderly population above 65 is set to grow by 80% worldwide, and the increases are expected to be even higher in emerging markets. I know China is anxious to learn more about senior housing from North Americans. Baby boomers spending power has been very strong.
7) As baby boomers age, they most likely will dispose their property, then either choose to move to senior home or go renting. Would this lead to a significant reduction of housing demand? could there be a switch from "baby boom to baby bust"?
Due to longer life spans afforded by medical advances, as well as the impact of on savings after the recession, we are seeing a significant delay in the decision to move to retirement housing as people continue working longer and remain in their existing homes. We have also seen a slowdown in migration to traditional areas for retirement such as lorida and Arizona as more seniors are electing to remain near family and friends. So this has delayed the flow of inventory into the market, at least for now. No doubt at some point we will see that shift occur, and it will lead to a significant supply of larger homes coming on the market for which buyers may not be available, or which may not fit the needs of younger buyers due to construction or style.
To wrap up our wonderful conversation. Due to the global uncertainty, How do you forecast the 2016 real estate market and what market should we pay attention to? Would luxury home still be as demanding?
We find the forcast for Real Estate Sale both in US and Canada is going to reflect continous growth, just a little slower, more sustainable pace. Prices will trim off a bit, which is good for buyers overall
